Video: China Gets the iPad

Apple has been slower than competitors in establishing retail channels in China and in bringing its hottest products to the world’s most exciting market. But with the launch of its iPad tablet computer in China today, the company may finally be upping its China game.

The iPad went on sale at 8 a.m. at the Apple Store in Beijing and was also being offered at the Apple Store in Shanghai, as well as through the company’s authorized resellers. In the capital, a small crowd lined up outside the Apple Store in a steady rain to buy iPads.

“I came at 6:30,” said one of the buyers walking out of the store, as Apple employees applauded his purchase loudly. He had been the 95th person in line. “I saw two days ago that Apple would be selling the iPad here, so I decided to buy one.” Asked why he didn’t buy an iPad earlier on the gray market—those brought into China from overseas without Apple’s authorization—he said “you can’t be sure about the quality of those iPads.”

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Lu Xuefeng, a seller of gray-market iPads, was also in line. His store in Beijing has been selling iPads for months. “We sell more than ten iPads per day,” he said. “The 3G ones are more popular,” he added, referring to the iPad with wireless capabilities, which Apple isn’t yet selling in China (the ones on sale Friday have only Wi-Fi). A 64-gigabyte 3G iPad sells for 6,800 yuan at his store, or about $1000.

Wi-Fi iPads in the Beijing Apple Store were being sold for 5,588 yuan ($826) for the 64-gigabyte model, and 3,988 yuan ($590), for the 16-gigabyte model. Wi-Fi iPads on the gray market go for about $680 to $880.

Nearly every person leaving the store Friday was holding an Apple purchase, and the second floor of the store was buzzing with new iPad owners learning how to use their devices, unlike the iPhone launch at the store last year when many people were just browsing.

Apple limited each customer to two iPads.

Another big difference with the iPhone launch: today’s kick-off in China comes a mere five months after the iPad was launched in the U.S. By comparison, Apple didn’t start selling the iPhone in China—the world’s biggest mobile phone market–until last October, even though it was released in the U.S. in 2007. (Apple still hasn’t announced plans for China for the iPhone 4, which went on sale in the U.S. in June—though there are signs it may arrive in China soon.)

Shaun Rein, managing director of China Market Research Group, says the iPad could give Apple a boost. “I see the iPad as a major win for Apple in China,” he said. “There’s not much competition in the market” and consumers say “they can’t wait for it.”

Though there is significant interest in Apple products in China, the company’s release of the iPhone has been lackluster compared to its release in other markets, in part because it took so long to officially launch the device here. In the more than two years between the U.S. iPhone launch its official launch in China, the gray market for iPhones—including millions of iPhones that were hacked and packaged with pirated software—became well-established.

In that time, several high-profile devices running on Google’s Android were also launched, presenting a more competitive environment for Apple when it finally released the iPhone in China. Though there are plenty of iPad wannabes in Chinese electronic markets—ranging from Chinese tablet computers running Microsoft’s Windows to fake iPads running Android—Apple’s major competitors are still racing to launch comparable products.

Apple launched the iPad in China “fairly quickly after launching it globally. It’s not like people have had years to go and jailbreak them,” Rein said.

In addition the iPad, with its large screen, isn’t a device that users will necessarily want to run low-quality pirated software on, which could be a boon for Apple’s China App Store.

Apple has declined to say when the company will release 3G versions of the iPad in China.
– Loretta Chao
Correction: A previous version of this post misreported the time iPads went sale at the Beijing Apple Store as 10 a.m.

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